The share price of Nintendo took a major hit today (January 20th) after the company released a loss warning.
It announced that it expects to make an operating loss of 35 billion yen (£205 million) for the financial year ending March 31st 2014 after disappointing sales of its Wii U console.
Nintendo has struggled to keep up with rival video game console manufacturers Sony and Microsoft in the last few years and Wii U sales have failed to meet expectations.
The firm has now also cut its global Wii U sales forecast for the year from nine million to 2.8 million units, which is a reduction of nearly 70 per cent.
"Its console-based business model spells doom for stakeholders," analysts at Jefferies wrote in a note. "It has no choice but to accept the change. We believe Mario on mobile is coming."
As a result of the loss warning issued by the company, Nintendo stocks were down by almost a fifth over the course of the day, with its share price losing 18 per cent of its value.
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